YouTube T4-11: Black Scholes Merton option pricing model

Nicole Seaman

Director of CFA & FRM Operations
Staff member
Subscriber
David gives a brief tour of a Black Scholes option pricing model. He highlights three of the questions that we get about this famous model. 1. How are dividends exactly treated? 2. Can we interperet N(d1) and N(d2)? 3. Is there any way to get an intuition about how this Black Scholes works short of going all the way back to the differential equation?

David's XLS is here: https://trtl.bz/2E8qsmw


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